Business Analyst vs. Data Analyst: What’s the Difference?

Data analysts and business analysts both help drive data-driven decision-making in their organizations. Data analysts work more closely with the data itself, while business analysts are more involved in addressing business needs and recommending solutions. Both are highly sought-after roles that are typically well-compensated.

In this article, we’ll look closer at what makes each role unique and why you might choose to pursue either as a career. Afterward, if either path intrigues you, consider enrolling in the Google Data Analytics Professional Certificate or the Microsoft Business Analyst Professional Certificate to start building job-relevant skills today.

Business analytics vs. data analytics

Business analysts and data analysts have similar roles, and some companies might use the terms interchangeably. Yet, while both types of analysts use data to improve business decisions, they do so in different ways. 

What do business analysts do?

Business analysts help identify problems, opportunities, and solutions for their organizations. They do this by:

• Evaluating a company’s current functions and IT structures

• Reviewing processes and interviewing team members to identify areas for improvement

• Presenting findings and recommendations to management and other key stakeholders

• Creating visuals and financial models to support business decisions

• Training and coaching staff in new systems

What is a business intelligence (BI) analyst?

BI analysts are somewhat of a hybrid between business and data analysts. They use analysis, modeling, and visualization of industry trends and the competitive landscape to help businesses cut losses and increase profits.

What do data analysts do?

Data analysts gather, clean, analyze, visualize, and present existing data to help inform business decisions. An effective data analyst uses data to answer a question and empower decision-makers to plot the best course of action. Common tasks for a data analyst might include:

• Working with business leaders and stakeholders to define a problem or business need

• Identifying and sourcing data 

• Cleaning and preparing data for analysis

• Analyzing data for patterns and trends

• Visualizing data to make it easier to understand

• Presenting data in such a way that it tells a compelling story

Learn more about the job of a data analyst in this lecture from Google's Data Analytics Professional Certificate:

Educational background

Business and data analysts can come from various academic backgrounds, though many companies look for candidates with at least a bachelor’s degree. Generally speaking, business analysts might have a degree in a business-related field, while data analysts often have degrees in STEM fields like statistics, math, or computer science.

Earning a graduate degree focusing on data analytics could open opportunities for advancement in either field.

No degree is required for some entry-level roles

Earn a Professional Certificate in data analytics from Google or IBM to build the skills necessary for an entry-level data analyst role in less than six months of study.

Skills: Business vs. data analyst

Data analytics and business analytics require similar interpersonal skills but slightly different technical skill sets. Whichever path you choose, for example, you can set yourself up for success by being a good:

• Oral and written communicator

• Problem solver

• Critical thinker

• Organizer

• Collaborator

While both occupations work with data, they do so in different ways. Here’s a look at some common skills for each.

Salaries

The in-demand skills involved in data and business analysis often draw high salaries. According to Glassdoor, business analysts in the US earn an average base pay of $93,742 as of January 2025, while data analysts bring in an average base pay of $85,913 [1,2].

Build your data career on Coursera

Business and data analysts use their knowledge of data to help organizations make better, more informed decisions. Prepare for your data career with one of these job-relevant programs on Coursera:

To prepare for a career as a data analyst, consider taking Google's Data Analytics Professional Certificate. In as little as six months, you'll gain an immersive understanding of the practices and processes used by junior data analysts, build key analytical skills, and learn how to visualize and present data findings in dashboards.

To launch your career as a business analyst, enroll in Microsoft's Business Analyst Professional Certificate. Learn how to identify and analyze business problems, use Microsoft Excel for data analysis and visualization, and model business processes in as little as three months.

To advance your data or business analyst career , explore the Google Business Intelligence Professional Certificate. In this advanced-level program, you'll practice data modeling and ETL processes, create dashboards that communicate insights, and design data visualization that answers business questions.

Frequently asked questions (FAQ)